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INTRODUCTION

INDUSTRY PROFILE

INTRODUCTION

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and

well-regulated. The financial and economic conditions in the country are far superior to any

other country in the world. Credit, market and liquidity risk studies suggest that Indian banks

are generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking models like

payments and small finance banks. The central bank granted in-principle approval to 11

payments banks and 10 small finance banks in FY 2015-16. RBI’s new measures may go a

long way in helping the restructuring of the domestic banking industry.

MARKET SIZE

The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43

foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural

cooperative banks, in addition to cooperative credit institutions. Public-sector banks control

nearly 80 percent of the market, thereby leaving comparatively much smaller shares for its

private peers. Banks are also encouraging their customers to manage their finances using

mobile phones.

Standard & Poor’s estimates that credit growth in India’s banking sector would improve to

11-13 per cent in FY17 from less than 10 per cent in the second half of CY14.

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INVESTMENTS/DEVELOPMENTS

Key investments and developments in India’s banking industry include:

 RBL Bank Limited, an Indian private sector bank, has raised Rs 330 crore (US$ 49.6

million) from a UK-based development finance institution CDC Group Plc, which

will help RBL to strengthen the capital base to meet future requirements.

 The State Bank of India (SBI) signed an agreement with The World Bank for a Rs

4,200 crore (US$ 625 million) credit facility, aimed at financing grid connected

rooftop solar photovoltaic (GRPV) projects in India.

 JP Morgan Chase, the largest bank in United States by assets, plans to expand its

operations in India by opening three new branches in Delhi, Bangalore and Chennai in

addition to its existing branch in Mumbai.

 Canada Pension Plan Investment Board (CPPIB), an investment management

company, has bought a large stake in Kotak Mahindra Bank Ltd from Japan-based

Sumitomo Mitsui Banking Corporation.

 India’s first small finance bank called the Capital Small Finance Bank has started its

operations by launching 10 branch offices in Punjab, and aims to increase the number

of branches to 29 in the current FY 2016-17.

 FreeCharge, the wallet company owned by online retailer Snapdeal, has partnered

with Yes Bank and MasterCard to launch FreeCharge Go, a virtual card that allows

users to pay for goods and services at online shops and offline retailers.

 Exim Bank of India and the Government of Andhra Pradesh has signed a

Memorandum of Understanding (MoU) to promote exports in the state.

 Kotak Mahindra Bank Limited has bought 19.9 per cent stake in Airtel M Commerce

Services Limited (AMSL) for Rs 98.38 crore (US$ 14.43 million) to set up a

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payments bank. AMSL provides semi-closed prepaid instrument and offers services

under the ‘Airtel Money’ brand name.

 Ujjivan Financial Services Ltd, a microfinance services company, has raised Rs 312.4

crore (US$ 45.84 million) in a private placement from 33 domestic investors

including mutual funds, insurance firms, family offices and High Net Worth

Individuals (HNIs)).

 India's largest public sector bank, State Bank of India (SBI), has opened its first

branch dedicated to serving start-up companies, in Bengaluru.

 Global rating agency Moody's has upgraded its outlook for the Indian banking system

to stable from negative based on its assessment of five drivers including improvement

in operating environment and stable asset risk and capital scenario.

 Lok Capital, a private equity investor backed by US-based non-profit organisation

Rockefeller Foundation, plans to invest up to US$ 15 million in two proposed small

finance banks in India over the next one year.

 The Reserve Bank of India (RBI) has granted in-principle licences to 10 applicants to

open small finance banks, which will help expanding access to financial services in

rural and semi-urban areas.

 IDFC Bank has become the latest new bank to start operations with 23 branches,

including 15 branches in rural areas of Madhya Pradesh.

 The RBI has given in-principle approval to 11 applicants to establish payment banks.

These banks can accept deposits and remittances, but are not allowed to extend any

loans.

 The Bank of Tokyo-Mitsubishi (BTMU), a Japanese financial services group, aims to

double its branch count in India to 10 over the next three years and also target a 10 per

cent credit growth during FY16.

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 The RBI has allowed third-party white label automated teller machines (ATM) to

accept international cards, including international prepaid cards, and said white label

ATMs can now tie up with any commercial bank for cash supply.

 The RBI has allowed Indian alternative investment funds (AIFs), to invest abroad, in

order to increase the investment opportunities for these funds.

 Bandhan Financial Services raised Rs 1,600 crore (US$ 234.8 million) from two

international institutional investors to help convert its microfinance business into a

full service bank. Bandhan, one of the two entities to get a banking licence along with

IDFC, launched its banking operations in August 2015.

GOVERNMENT INITIATIVES

The government and the regulator have undertaken several measures to strengthen the Indian

banking sector.

 In July 2016, the government allocated Rs 22,915 crore (US$ 3.41 billion) as capital

infusion in 13 public sector banks, which is expected to improve their liquidity and

lending operations, and shore up economic growth in the country.

 The Reserve Bank of India (RBI) has released the Vision 2018 document, aimed at

encouraging greater use of electronic payments by all sections of society by bringing

down paper-based transactions, increasing the usage of digital channels, and boosting

the customer base for mobile banking.

 The Reserve Bank of India (RBI) has issued guidelines for priority sector lending

certificates (PSLCs), according to which banks can issue four different kinds of

PSLCs—those for the shortfall in agriculture lending, lending to small and marginal

farmers, lending to micro enterprises and for overall lending targets – to meet their

priority sector lending targets.

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 The Reserve Bank of India (RBI) has allowed additional reserves to be part of tier-1

or core capital of banks, such as revaluation reserves linked to property holdings,

foreign currency translation reserves and deferred tax assets, which is expected to

shore up the capital of state-run banks and privately owned banks by up to Rs 35,000

crore (US$ 5.14 billion) and Rs 5,000 crore (US$ 734 million) respectively.

 Scheduled commercial banks can grant non-fund based facilities including partial

credit enhancement (PEC), to those customers, who do not avail any fund based

facility from any bank in India.

 To reduce the burden of loan repayment on farmers, a provision of Rs 15,000 crore

(US$ 2.2 billion) has been made in the Union Budget 2016-17 towards interest

subvention.

 Under Pradhan Mantri Jan Dhan Yojna (PMJDY), 250.5 million accounts! have been

opened and 192.2 million RuPay debit cards have been issued as of October 12, 2016.

These new accounts have mustered deposits worth almost Rs 44,480 crore (US$ 6.67

billion).

 The Government of India is looking to set up a special fund, as a part of National

Investment and Infrastructure Fund (NIIF), to deal with stressed assets of banks. The

special fund will potentially take over assets which are viable but don’t have

additional fresh equity from promoters coming in to complete the project.

 The Reserve Bank of India (RBI) plans to soon come out with guidelines, such as

common risk-based know-your-customer (KYC) norms, to reinforce protection for

consumers, especially since a large number of Indians have now been financially

included post the government’s massive drive to open a bank account for each

household.

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 To provide relief to the state electricity distribution companies, Government of India

has proposed to their lenders that 75 per cent of their loans be converted to state

government bonds in two phases by March 2017. This will help several banks,

especially public sector banks, to offload credit to state electricity distribution

companies from their loan book, thereby improving their asset quality.

 Government of India aims to extend insurance, pension and credit facilities to those

excluded from these benefits under the PradhanMantri Jan DhanYojana (PMJDY).

 To facilitate an easy access to finance by Micro and Small Enterprises (MSEs), the

Government/RBI has launched Credit Guarantee Fund Scheme to provide guarantee

cover for collateral free credit facilities extended to MSEs upto Rs 1 Crore (US$ 0.15

million). Moreover, Micro Units Development & Refinance Agency (MUDRA) Ltd.

was also established to refinance all Micro-finance Institutions (MFIs), which are in

the business of lending to micro / small business entities engaged in manufacturing,

trading and services activities up to Rs 10 lakh (US$ 0.015 million).

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ROAD AHEAD

The Indian economy is on the brink of a major transformation, with several policy initiatives

set to be implemented shortly. Positive business sentiments, improved consumer confidence

and more controlled inflation are likely to prop-up the country’s the economic growth.

Enhanced spending on infrastructure, speedy implementation of projects and continuation of

reforms are expected to provide further impetus to growth. All these factors suggest that

India’s banking sector is also poised for robust growth as the rapidly growing business would

turn to banks for their credit needs.

Also, the advancements in technology have brought the mobile and internet banking services

to the fore. The banking sector is laying greater emphasis on providing improved services to

their clients and also upgrading their technology infrastructure, in order to enhance the

customer’s overall experience as well as give banks a competitive edge.

Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-

less credit and debit cards in the market shortly. The cards, which use near field

communication (NFC) mechanism, will allow customers to transact without having to insert

or swipe.

Exchange Rate Used: INR 1 = US$ 0.0149 as on September 28, 2016

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COMPANY PROFILE

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HDFC BANK LIMITED

HDFC Bank (Housing

Development Finance

Corporation) is an Indian

banking and financial services company headquartered in Mumbai, Maharashtra. It has about

87,555 employees and has a presence in Bahrain, Hong Kong and Dubai.[7] HDFC Bank is

the second largest private bank in India as measured by assets. It is the largest bank in India

by market capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top 100

Most Valuable Global Brands.

PROFILE

HDFC BANK

Type Public
Traded as BSE: 500180
NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Banking, Financial services
Founded August 1994
Headquarters Mumbai, Maharashtra, India
Area served India
Key people Aditya Puri (MD)
Products Investment Banking
Investment Management
Wealth Management
Private Banking
Corporate Banking

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Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards
Revenue Rs. 10,588.1 crore(US$1.6 billion) (2016)
Profit Rs. 3,238.9 crore(US$480 million) (2016)
Total assets Rs. 755,100 crore(US$110 billion)(2016)
Total equity Rs. 507.1 crore(US$75 million)
Number of employees 87,555 (April 2016)
Website HDFCBank.com

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HISTORY

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation

Limited (HDFC), India's largest housing finance company. It was among the first companies

to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in

the private sector. The Bank started operations as a scheduled commercial bank in January

1995 under the RBI's liberalisation policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with

HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India.

Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times

Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more

than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net

advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more

than Rs. 1,63,000 crore.

Business focus

HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail

Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for

providingworking capital finance, trade services, corporate finance, and merchant banking. It

is also providing sophisticated product structures in areas of foreign exchange and

derivatives, money markets and debt trading And Equity research.

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Wholesale banking services

Blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and

agri-based businesses. For these customers, the Bank provides a wide range of commercial

and transactional banking services, including working capital finance, trade services,

transactional services, cash management, etc. The bank is also a leading provider of the above

services to its corporate customers, mutual funds, stock exchange members and banks.

Retail banking services

HDFC Bank was the first bank in India to launch an International Debit Card in association

with VISA (Visa Electron) and issues the MasterCard Maestro debit card as well. The Bank

launched its credit card business in late 2001. By March 2009, the bank had a total card base

(debit and credit cards) of over 13 million. The Bank is also one of the leading players in the

“merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit /

credit cards acceptance at merchant establishments. The Bank is positioned in various net

based B2C opportunities including a wide range of internet banking services for Fixed

Deposits, Loans, Bill Payments, etc.With Finest of Technology and Best of Man power in

Banking Industry HDFC BANK's retail services have become by and large the best in India

and since the contribution to CASAi,e total number of current and savings account of more

than 50%, HDFC BANK has full potential to become Indias No.1 Private Sector Bank.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services

are provided through the bank's Treasury team. To comply with statutory reserve

requirements, the bank is required to hold 25% of its deposits in government securities. The

Treasury business is responsible for managing the returns and market risk on this investment

portfolio.
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Distribution network

HDFC Bank is headquartered in Mumbai. As of June 30, 2015, the Bank’s distribution

network was at 4,101 branches. All branches are linked on an online real-time basis.

Customers across India are also serviced through multiple delivery channels such as Phone

Banking, Net Banking, Mobile Banking and SMS based banking. The Bank’s expansion

plans take into account the need to have a presence in all major industrial and commercial

centres, where its corporate customers are located, as well as the need to build a strong retail

customer base for both deposits and loan products. Being a clearing / settlement bank to

various leading stock exchanges, the Bank has branches in centres where the NSE / BSE have

a strong and active member base.

The Bank also has a network of 11,962 ATMs across India. HDFC Bank’s ATM network can

be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro,

Plus / Cirrus and American Express Credit / Charge cardholders

MANAGEMENT

Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs.

Gopinath has 39 years of experience in financial sector policy formulation in different

capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board.

Mrs. Gopinath had been guiding and influencing the national policies in the diverse areas of

financial sector regulation and supervision, development and regulation of financial markets,

capital account management, management of government borrowings, forex reserves

management and payment and settlement systems.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years

and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

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experience in public policy, administration, industry and commercial banking. Senior

executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various

businesses and functions and report to the Managing Director. Given the professional

expertise of the management team and the overall focus on recruiting and retaining the best

talent in the industry, the bank believes that its people are a significant competitive strength.

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Awards and Achievements - Banking Services

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian

Bank". We realised that only a single-minded focus on product quality and service excellence

would help us get there. Today, we are proud to say that we are well on our way towards that

goal.

It is extremely gratifying that our efforts towards providing customer convenience have been

appreciated both nationally and internationally.

2016

Asiamoney FX Poll 2016 -Ranked No. 1 in the Best Domestic


Provider for FX Products and Services in
India
-Ranked No.2 in the Best Domestic
Provider of FX Services and for FX
Research and Market Coverage
-Ranked No. 1 in the Best Local Cash
Management Bank in India
BrandZ Top 50 Most Valuable Indian HDFC Bank has been ranked India's most
Brands valuable brand for the 3rd consecutive year
CNBC-TV18 India Business Leader Outstanding Business Leader of the year
Awards (IBLA) 2015-16
The Financial Express India's Best Lifetime Achievement Award to Mr. Aditya
Banks Awards Puri
IDRBT Banking Technology Best Bank in Banking Technology
Excellence Awards 2016 Excellence for the year 2015-16
Cisco-CNBC TV 18 Digitizing India Award for Innovations in the Financial
Awards Industry & Digital Banking
Dun & Bradstreet Corporate Awards HDFC Bank wins Dun & Bradstreet
2016 Corporate Award 2016 in the Banking
sector

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The Financial Express India's Best - Profitability: Rank 1
Banks Awards 2015 - Efficiency: Rank 1
- Strength & Soundness: Rank 1
Outlook Money Awards 2015 - Best Bank of the year : Runner up
- Winner : Institutional Financial
Distributor of the year
Pension Fund Regulatory and - Best Performing Bank - Maximum APY
Development Authority awards for Subscribers
Atal Pension Yojana - Best Performing Bank in the Private
sector Banks category
- Best Performing Bank : Atal Pension
Yojana Carnivals in Private Sector Banks
Business Today KPMG India's Best Banks 2015 Awards
Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global
CEOs for 2nd year
IBA Awards HDFC Bank wins prestigious IBA Banking
Technology Awards
Business Today Best Companies to Work for in India
NABARD Award Best Bank in JLG-Bank Linkage
programme in Assam
Business Today - KPMG India's Best HDFC Bank wins Bank of the year and
Bank Best Digital Banking Initiative awards
NABARD Award - The Best Bank in HDFC Bank wins NABARD Award
SHG Credit Linkage in Tamil Nadu

2015

FinanceAsia Country Awards 2015 - Best Asian Bank


- Best Domestic Bank - India
Forbes Asia Fab 50 Companies List for the 9th year
AIMA Managing India Awards 2015 - Business Leader of the Year - Aditya

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Puri
Barron's - World's 30 Best CEOs - Mr Aditya
Puri
Finance Asia poll on Asia's Best - Best Managed Public Company -
Companies 2015 India'
Best CEO- Aditya Puri
Best Corporate Governance- Rank 3
Best Investor Relations- Rank 3
J. P Morgan Quality Recognition Award - Best in class straight Through
Processing Rates

2014

Euromoney - HDFC Bank wins Best Private Banking


Services for Super affluent clients for 5 years in
a row at Euromoney Awards
Euromoney Private Banking and Wealth - Best Private Banking Services award for Net-
Management Survey 2015 worth-specific services category for Super
affluent clients (US$ 1 million to US$ 5 million).
- Best Private Banking Services award Asset
Management
FE Best Bank Awards - Best Bank in the New Private sector
- Winner - Profitability
- Winner - Efficiency
Business Today - KPMG Study 2014 - Best Large Bank - Overall
- Best Large Bank - Growth
Businessworld-PwC India Best Banks - Best Large Bank
Survey 2014 - Fastest Growing Large Bank
Asiamoney FX Poll 2014 - Best Domestic Provider of FX options
- Best Domestic Provider of FX products &
Services

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- Best Domestic Provider of FX research &
market coverage
- Best Domestic provider for FX Services
The Asian Banker Strongest Bank in India in the Asian Banker 500
(AB 500) Strongest Bank by Balance Sheet
Ranking 2014
Dun & Bradstreet - Polaris Financial - Best Bank - Managing IT Risk (Large Banks)
Technology Banking Awards 2014 - Best Bank - Mobile Banking (Large Banks)
- Best Bank - Best IT Team (Private Sector
Banks)
Forbes Asia Fab 50 Companies List for the 8th year
BrandZ TM Top 50 Most Valuable India's Most Valuable Brand
Indian Brands study by Millward Brown
Finance Asia Country Awards 2014 and - Best Bank - India
poll on India's Top Companies - Best CEO- Rank 1
- Best CSR - Rank 1
- Best CFO - Rank 2
Asiamoney Best of Best Domestic Banks - India
Dun & Bradstreet - Manappuram Best Corporate in Banking Sector
Finance Limited Corporate Award 2014

2013

Asiamoney - Best Domestic Bank in India


- Best Local Cash Management Bank in India
- Aditya Puri - Best Executive in India
Institute for Development and - Best Bank - Managing IT Risk (Large Banks)
Research in Banking Technology - Best Bank - Mobile Banking (Large Banks)
Awards - Best Bank - Best IT Team (Private Sector Banks)
Businessworld Best Bank in India (Large Banks)
Guinness World Record A GUINNESS WORLD RECORDTMcreated for the
Largest Blood Donation Drive across multiple venues,
in a single day
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Finance Asia Country Awards for Best Bank - India
Achievement
IBA Banking Technology Awards - Best Technology Bank of the year - Winner
2012-13 - Best Internet Bank - Winner
- Best Customer Management Initiative - Winner
- Best use of Mobility Technology in Banking
Business Standard Mr Aditya Puri - Banker of the Year 2013
Business Today-KPMG Best Banks Best Bank 2013
Survey 2013
Business India Best Bank 2013
Global Finance Survey -World's Best Bank in India
Best Banks 2013
Outlook Money Awards 2013
Best Bank in Large Banks Category

IBA Innovation Awards


Most Innovative use of Technology

Dun & Bradstreet Polaris Financial


Technology Banking Award 2013 - Best Private Sector Bank Technology Adoption
- Best Private Sector Bank Retail
- Overall Best Private Sector Bank

Institutional Investor
- Best Bank in Asia
- Mr. Aditya Puri - Best CEO

Forbes Asia
Fab 50 Companies List for the 7th year

Sunday Standard Best Banker


Awards - Best Private Sector Bank: Large

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- Safest Bank: Large
- Mr. Aditya Puri: Top Achiever

UTI Mutual Fund CNBC TV 18


Financial Advisory Awards 2012 Best Performing Bank - Private

Asia Money 2013


- Best Domestic Bank in India
- Mr. Aditya Puri: Best Executive in India

MACCIA Awards 2013


Best in Financial Services: Bank Category

Dun & Bradstreet Corporate Best in Banking sector


Awards 2012
NDTV Profit Business Leadership Winner in the banking category
Awards 2012
NASSCOM CNBC–TV18 IT Best IT Driven Innovation in Banking
Innovation Award (COMMERCIAL)
The National Quality Excellence Best Customer Service Result
Awards
FE Best Bank Awards - Best Bank: New Private sector
- Best in Strength & Soundness
- Mr. Aditya Puri: Best Banker
Skoch Financial Inclusion Awards Organisation of the Year
2013

2012

IDRBT Banking Best Bank in 'IT for Operational Effectiveness' category


Technology
Excellence Awards
2011-12
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Asia Money 2012 Best Domestic Bank in India
India's Top 500 Best Bank in India
Companies -Dun &
Bradstreet
Corporate Awards
Finance Asia - Best Managed Company
- Best CEO - Mr. Aditya Puri
UTI Mutual Fund - Best Performing Bank - Private
CNBC TV 18
Financial Advisor
Awards 2011
Asian Banker - Best Retail Bank in India
International - Best Bancassurance
Excellence in Retail - Best Risk Management
Financial Services
Awards 2012
5th Loyalty Summit Customer and Brand Loyalty
award
Skoch foundation SHG/JLG linkage programme
2012
ICAI Awards 2011 Excellence in Financial Reporting

2011

Outlook Money - Best Bank - Runner Up


Best Bank Award
2011
Best Commercial - Driving Positive Change
Vehicle Financier
Businessworld Best - Best Bank
Bank award
BCI Continuity & - Most Effective Recovery of the Year
Resilience Award
Financial Express - Best in Strength and Soundness
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Best Bank Survey - 2nd Best in the Private Sector
2010-11
CNBC TV18's Best - Best Bank
Bank & Financial - Mr. Aditya Puri, Outstanding Finance Professional
Institution Awards
Dun & Bradstreet Best Private Sector Bank - SME Financing
Banking Awards
2011
ISACA 2011 award Best practices in IT Governance and IT Security
for IT Governance
IBA Productivity New Channel Adopter (Private Sector)
Excellence Awards
2011
DSCI (Data Security in Bank
Security Council of
India) Excellence
Awards 2011
Euromoney Awards Best Bank in India
for Excellence 2011
FINANCE ASIA - BEST BANK
Country Awards - BEST CASH MANAGEMENT BANK
2011: India - BEST TRADE FINANCE BANK
Asian Banker Strongest Bank in Asia Pacific
BloombergUTV's Best Bank
Financial
Leadership Awards
2011
IBA Banking Winner -
Technology Awards 1) Technology Bank of the Year
2010 2) Best Online Bank
3) Best Customer Initiative
4) Best Use of Business Intelligence

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5) Best Risk Management System
Runners Up -
Best Financial Inclusion
IDC FIIA Awards Excellence in Customer Experience
2011

2010

Outlook Money Best Bank


2010 Awards
Businessworld Best Best Bank (Large)
Bank Awards 2010
Teacher's Mr. Aditya Puri
Achievement
Awards 2010
(Business)
The Banker and Best Private Bank in India
PWM 2010 Global
Private Banking
Awards
Economic Times Business Leader of the Year - Mr. Aditya Puri
Awards for
Corporate
Excellence 2010
Forbes Asia Fab 50 Companies - 5th year in a row
NDTV Business Best Private Sector Bank
Leadership Awards
2010
The Banker World's Top 1000 Banks
Magazine
MIS Asia IT BEST BOTTOM-LINE I.T. Category
Excellence Award
2010
Dun & Bradstreet
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Banking Awards  Overall Best Bank
2010  Best Private Sector Bank
 Best Private Sector Bank in SME Financing
Institutional HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of
Investor Magazine Finance 2010"
Poll
IDRBT Technology Winner - 1) IT Infrastructure 2) Use of IT within the Bank
2009 Awards Runners-up - IT Governance (Large Banks)
ACI Excellence Highly Commended - Asia Pacific HDFC Bank
Awards 2010
FE-EVI Green Best performer in the Banking category
Business
Leadership Award
Celent's 2010 Model Bank Award
Banking Innovation
Award
Avaya Global Customer Responsiveness Award - Banking & Financial
Connect 2010 Services category
Forbes Top 2000 Our Bank at 632nd position and among 130 Global High
Companies Performers
Financial Express -
Ernst & Young  Best New Private Sector Bank
Survey 2009-10  Best in Growth
 Best in strength
Asian Banker
Excellence Awards  Best Retail Bank in India
2010  Excellence in Automobile Lending
 Best M&A Integration
 Technology Implementation
The Asset Triple A Best Cash Management Bank in India
Awards
Euromoney Private 1) Best Local Bank in India (second year in a row) 2) Best

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Banking and Wealth Private Banking Services overall (moved up from No. 2 last
Management Poll year)
2010
Financial Insights Innovation in Branch Operations - Server Consolidation
Innovation Awards Project
2010
Global Finance Best Trade Finance Provider in India for 2010
Award
2 Banking 1) Best Risk Management Initiative and 2) Best Use of Business
Technology Awards Intelligence.
2009
SPJIMR Marketing 2nd Prize
Impact Awards
(SMIA) 2010
Business Today Listed in top 10 Best Employers in the country
Best Employer
Survey

We are aware that all these awards are mere milestones in the continuing, never-ending
journey of providing excellent service to our customers. We are confident, however, that with
your feedback and support, we will be able to maintain and improve our services.

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HDFC BANK SERVICES

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PRODUCTS AND SERVICES AT A GLANCE

ACCOUNTS & LOANS INVESTMENTS &


DEPOSITS INSURANCE

- Regular Savings Account - Personal Loans - Mutual Funds


- Savings Plus Account - Home Loans - Tax Planning
- Savings Max Account - Two Wheeler Loans - Insurance
- Senior Citizens Account - New Car Loans - Bonds
- No Frills Account - Used Car Loans - Financial Planning
- Salary Account - Overdraft against Car - Knowledge Centre
- Kid's Advantage Account - Express Loans - Equities & Derivatives
- Pension Saving Bank - Loan against Securities - Mudra Gold Bar
Account - Loan against Property - Mudra silver Bar
- Family Savings Account -Loan against Rental
- Plus Current Account Receivables
- Trade Current Account -Health care finance CARDS
- Premium Current Account -Tractor Loans
- Regular Current Account - Commercial Vehicle
- Apex Current Account Finance - Credit cards
- Max Current Account - Working Capital Finance - Debit cards
- Merchant Current - Construction Equipment - Prepaid cards
Account Finance
- Regular Fixed Deposit
-Recurring Deposits.
- Super Saver Account
- Sweep-in Account
- HDFC Bank
Imperia/Classic/Preferred
Banking

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FOREX SERVICES PAYMENT SERVICES ACCESS YOUR
ACCOUNT THROUGH

- Net Safe -Net Banking


- Product & Services - Prepaid Refill -Credit card Online
- Trade services - Bill Pay -One View
- Forex service Branch - Direct Pay -Insta Alert
Locator - Visa Money Transfer -Mobile Banking
- Forex Limits - E-Monies Electronic -ATM
- Forex Plus Card Funds Transfer -Phone Banking
- RBI Guidelines - Excise & Service Tax -Email Statements
Payment

HDFC BANK PLUS

Apart from Regular and Premium Current accounts we also have HDFC Bank Plus, a Current

Account and then some more. You can transfer up to Rs. 50 lakh per month at no extra

charge, between the four metros. You can also avail of cheque clearing between the four

metros, get cash delivery/pickup upto Rs. 25,000/- home delivery opf Demand Drafts, at par

cheques, outstation cheque clearance facility, etc.

DEMAT ACCOUNT

Conduct hassle free transactions on your shares. You can also access your Demat Account on

the Internet.

PHONE BANKING

24 hour automated banking services with 39 Phone Banking numbers available.

ATM 24 hour banking: Apart from routine transactions, you can also pay your utility bills and

transfer funds, at any of our ATMs across the country all year round. Intercity/ Interbranch

Banking: Access your account from any of our 241 branches in 129 cities.

NET BANKING

29
Access your bank account from anywhere in the world, at anytime, at your own convenience.

You can also view your Demat Account through Net Banking.

INTERNATIONAL DEBIT CARD

An ATM card you can shop with all over the country and in over 140 countries with. You can

spend in any currency, and pay in Rupees.

MOBILE BANKING

Access your account on your mobile phone screen at no airtime cost. Use SMS technology to

conduct your banking transactions from your cellphone.

BILL PAY

Pay your telephone, electricity and mobile phone bills through our ATM, Internet, Phone or

mobile phone. No more standing in long queues or writing cheques.

LOANS:

PERSONAL LOANS

Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a computer or an

exciting holiday.

NEW CAR LOANS AND USED CAR LOANS

Finance up to 90% of the cost of car, new or used! And the loans come to you with easy

documentation and speedy processing at attractive interest rates.

LOANS AGAINST SHARES

Get an overdraft up to Rs. 10 lakh at an attractive interest rate against physical shares, up to

50% of the market value of your shares. In case of Demat Shares, you can get a Loans against

Shares of up to 65% of the market value of your shares, till Rs. 20 lakh.

30
MAIN TYPES OF ACCOUNTS OFFERED

SAVING ACCOUNTS

1. Regular Savings Account

2. SavingsMax Account

3. Senior Citizens Account

4. No Frills Account

5. Limited KYC Account

6. Institutional Savings Account

7. Kids Advantage Account

8. Pension Savings Account

9. Family Savings Group Account

10. Savings Plus Account

SALARY ACCOUNTS

1. Premium Salary Account

2. Regular Salary Account

3. Defence Salary Account

4. Classic Salary Account

5. Payroll Account

6. No Frills Salary Account

7. Reimbursement Account

8. Salary Family Account

31
CURRENT ACCOUNTS

1. Premium Current Account

2. Regular Current Account

3. RFC - Domestic Account

4. Flexi Current Account

5. Apex Current Account

6. Max Current Account

7. Merchant Advantage Current Account

8. Merchant Advantage Plus Current Account

9. Plus Current Account

10. Trade Current Account

11. Current Account for Professionals

12. Current Account for Hospitals and Nursing Homes

13. Agri Current Account

14. EZEE Current Account

15. Supreme Current Account

32
MANDATORY RULES OF RBI

 Documents to be displayed in the bank:

 Address & Phone number of the branch

 Time norms

 Notices of other branches & ATM’s

 Citizen Charter

 Bankers fair practice code

 Code of Commitment

 Model Policies

 Outstation Cheques

 Customer Redressal of their grievances

 The banking Ombudsmen scheme 2006

 Precaution – Important notice

 Clean notice Policy

 Acceptance of Coins

 Customers Day

 Bank Notes

 HR Gratituty Rules

 Display on information on deposits

 Service Charges for Savings Account

 Service Charges for Current Account

33
 Treatment of Soiled/Mutilated notes

 Branches can receive request for exchange of or refund against torn/soiled

notes

 Mutilated notes can be divided in Full value /Half value /Rejects

 Form DN1 (Defective note 1) is issued to customer as a token of acceptance of

the note indicating the number of pieces of note & value in each

denomination.

 Form DN2 is a register of mutilated notes received /paid /rejected.

 While making payment to customer, original token (DN1) to be retrieved from

customer.

 Advice against rejected notes is received in Form DN3

 Treatment of counterfeit notes

 All notes to be examined under the Ultra violet lamp

 Once a note is identified as counterfeit, it has to be impounded as Forged

 Customer should be requested to make good for the shortfall & make

necessary changes in pay-in-slip

 In no circumstances should the counterfeit note be handed over to customer

 Acknowledgement given to customer to mention bank name , serial no. of the

note , signature of tenderer of note & cashier signature

 ICMC will lodge a FIR with the police.

 Golden Rules for Signature Verification

 Do a naked eye matching of the signature

 Check the direction of the signature

 Start and end point of the signature

34
 Continuity / flow of signatures

 Number of curves / loops

 Identify flourishes like marks / strokes or special characters like underlines /

dots

 Identify any key letter in the signature which is unique to the person.

 General Security Measures

 Password Protection – Ensure absolute secrecy of the passwords

 Screen Lock – Remember to lock your screen when you move away from your

seat.

 Exercise utmost caution with any document submitted by the customer.

Maintain a proper system of processing these requests.

 If you are handling any security item like Demand draft inventory, then ensure

these are always kept under lock.

 Ensure duplicate keys for all keys you hold are available with the Branch

 While handling Cash ensure to lock the draws when not on the desk.

 If posted at the cash counter , make sure to keep the cabin door locked always

 Always verify customer signatures before processing any transaction

 Ensure to apply the crossing stamp on cheques while accepting clearing

cheques across the counter

 Display of prominent stickers in the cash area as ‘The branch is under Camera

Surveillance’.

35
MITRA COMMITTEE

The Mitra committee headed under the chairmanship of Dr. N.L. Mitra observed two very

wide systematic gaps in law and practice in dealings of the banks and financial institutions

with the public frauds. The committee therefore prepared the suggestions in two parts.

Part I – deals with the preventive aspects of management of financial frauds to keep it

happen only in rare cases. This suggests steps to contain a clean in house financial

management.

Part II – deals with prohibition of financial fraud and introduction of a deterrent

jurisprudence so that financial fraud being a serious offence to derail the system as a whole,

is adequately and firmly dealt with.

The Mitra committee recommendations are mentioned below:

1. Development of best practice code : Each bank and Financial institution within the

time frame indicated by the regulator , prepare a Best Practice Code (BPC) for its

officers and staff to provide detailed rule based procedural system related matters and

application of judging power.

2. System of Internalization of BPC : There has to be adequate in – house training,

retaining system for internalizing the BPC and all directives of the Institution and the

Regulator

3. Internal Check and Internal Control: There must be introduced a system of internal

check and internal control in the management.

4. Legal Compliance Certificate: A legal compliance certificate needs to be mandated

in all transaction exceeding a value limit. In case of exercise of judgment power, Aan

explanation should be needed about the circumstances requiring the exercise of

discretionary power.

36
5. Legal Compliance Audit: Every institution should have a legal compliance and due

diligence audit every year and submission of the report to the regulator and to the

shareholders.

6. Appropriate Incentive System: Use of discretionary power must be result oriented

either positively or negatively. Incentives in an organization may have some

correlation with the exercising of discretionary and the rationality of such judgment.

7. Liability of the Accounting and Auditing Professional: If the accounting

professional in course of audit find anything susceptible to be a fraud or fraudulent

activity, or use of excess power or smell any foul transaction, he should refer the

matter to the regulator. Any failure should be considered as professional incompetence

and attach liability.

8. Responsibility of Reserve Bank of India in frauds reported by Banks: The

committee feels that while the violation of any regulation should come within the

purview of the regulator, any act of omission or commission of the bank or any of its

employees attracts the provision of a criminal law, hence it needs to be tackled by the

RBI itself. For instance a fraud of Rs. 10 crore in a large public sector bank may not

be of much regulatory or supervisory concern; at the same time a similar fraud in a

small private sector bank may be of great concern. It is therefore; felt that the

response of the RBI to such frauds should take into account the whole picture.

Furthermore, individual monitoring of frauds could be left to the banks themselves. A

review of such monitoring can be done at the time of the periodical inspection of

banks.

37
9. DIFFERENT ROLES IN HDFC BANK (GENERAL BANKING

OPERATIONS)

 CASH

 ACCOUNT OPENING

 REMITTANCES

 CLEARING

CASH

The most liquid asset of a bank is CASH held with itself or with the Reserve Bank of India.

These cash reserves are also called the ‘first line of defense’ to indicate their significant role

in defending the solvency, reputation and goodwill of the bank. The demand of the customers

is immediately met by the bank with the cash balances with itself or the balances which are

within its immediate command.

Factors that determine the cash balances

 Growth of Banking habit

 Existence of Bankers

 The type and size of Deposit Accounts

 Nature of advances and availability of Refinance.

Mainly Cash transactions are carried in two forms, they are

CASH

Cash Payment Cash Receipts


(Payment made by the (Cash received by the customer
bank to customer ) to be deposited in the bank)
Cash Receipts
38
 Things Required at the Desk:

o Cash Deposit Slips

o Cash Received stamp

o Gadgets – cash counting machine , UV lamp

o System Profile ID (SANCHEZ)

 Things to check:

o Scrutinizing the deposit slips

o Currency features

o Bank charges , if any

o Identifying Counterfeit notes

o System Profile ID

o Safety measures/precautions at cash counter.

 Accept:

o Cash deposit slip with details- date, account number, name,

denominations & signatures.

o Cash

o While accepting the cash Rs 50,000 & above customer has to produce

Form 60 or PAN no. Agribased income customer has to produce Form

61 only.

 Ensure

o All fields are filled in the deposit slip.

o Cash denominations & total amount is mentioned.

39
o Depositor has signed.

o PAN/ Form 60 is submitted for deposit above Rs 50,000/-

 Process

o Accept the cash & deposit slip.

o Count the cash.

o Verify account number and name in the System Profile ID

o Enter the details in the system profile

o Affix cash received stamp at 3 places, 1 on the deposit slip – bank

copy, 2nd on the customer’s copy & 3rd on the perforation such that half

stamp is imprinted on bank copy & other half on customer’s copy.

Cash Payment

 Things Required at the Desk

o Cash

o Cash payment Stamp, UV lamp, Magnifying glass

o Cash counting machine

o System profile Id

 Things to check

o Types of Cheques bearer/order

o Scrutiny of cheque for payment

o Banking charges , if any

o Safety measures/precautions at cash counter

Accept

o Cheque for payment

 Ensure
40
o All details are filled in the cheque

o Cheque is not crossed or account payee

o Alterations are authorized by customer’s full signature

o Cheque is not post dated or stale

o Amount in words & figures match

o Verify if account has sufficient balance

o Customer has signed appropriately

o If order cheque, check for valid endorsements

o Signature tallies as per system profile

 Process

o Accept & scrutinize the cheque

o Pass entry in the system

o If amount >Rs.75, 000/-, get transaction verified by checker.

o Count the cash & ask customer to sign on the back of the instrument as

acknowledgement of payment received confirms two signatures.

o Handover to customer & write denomination paid at the back of the

instrument.

41
BANK ACCOUNT

Opening Bank Account is the most common and first service offered by the Banks. There are

different types of accounts offered

 Bank Savings Account - Bank Savings Account can be opened for eligible person /

persons and certain organizations / agencies (as advised by Reserve Bank of India

(RBI) from time to time)

 Bank Current Account - Bank Current Account can be opened by individuals /

partnership firms / Private and Public Limited Companies / HUFs / Specified

Associates / Societies / Trusts, etc.

 Bank Term Deposits Account - Bank Term Deposits Account can be opened by

individuals / partnership firms / Private and Public Limited Companies / HUFs/

Specified Associates / Societies / Trusts, etc.

 Bank Account Online - With the advancement of technology, the major banks in the

public and private sector has facilitated their customer to open bank account online.

Bank account online is registered through a PC with an internet connection. The

advent of bank account online has saved both the cost of operation for banks as well

as the time taken in opening an account, though it is not popular amongst all banks as

yet.

42
General procedure to open an account:-

 The Bank at first provides the customer with details of various types of accounts that

one can open with the Bank.

 The customer can have his choice on what type of account would best suit him, based

on his needs and requirements

 The Bank will, prior to opening an account, require documentation and information as

prescribed by the "Know Your Customer" (KYC) guidelines issued by RBI or such

other norms or procedures adopted by the Bank prior to opening the account.

 The due diligence process that the Bank would follow, will involve providing

documentation verification of identity, address and information of occupation or

business and source of funds of the customer.

 The Bank is required by law to obtain Permanent Account Number (PAN) or General

Index Register (GIR) Number or, where you do not possess such registration,

declaration in Form No. 60 or 61 as specified under the Income Tax Rules.

 In the event that the account opening process is likely to take longer than normal, the

Bank will inform of the revised timeline.

 The Bank will provide the customer with the account opening forms and other

relevant material to enable him open the account. Bank personnel will advise him on

the complete details of information that would be required by the Bank for the

verification process.

 The Bank reserves the right, at its sole discretion, to open any account and at such

terms as the Bank may prescribe from time to time.

43
Components of Welcome Kit

Welcome kit is issued to customer on opening an account. It includes deliverables required to

operate the account. A standard welcome kit will comprise of:

 Debit Card

 15 leaves Cheque book

 Debit card pin

 Internet banking user id

 Internet banking password

 Debit card user guide

 Internet banking user guide

 Welcome letter

44
KYC- Know Your Customer Guidelines

KYC guidelines are required to be followed by all banks at the time of opening a customer’s

account.

The main components of KYC documentation are:

 Identity proof of customer

 Driving license

 Voter ID

 Employee identity card

 PAN card

 MAPIN card issued by authorized agents of SEBI

 Passport

 Address proof of customer

 Latest electricity bill

 Certificate from the postal office confirming address of applicant

 Telephone bill

 Lease agreement

 Statement of account of last 3 months

 Post office savings pass book

 Passport

 Self cheque

 PAN number/ Form 60

 Two passport size photograph

45
MAIN TYPES OF ACCOUNTS OFFERED

SAVING ACCOUNTS

11. Regular Savings Account

12. SavingsMax Account

13. Senior Citizens Account

14. No Frills Account

15. Limited KYC Account

16. Institutional Savings Account

17. Kids Advantage Account

18. Pension Savings Account

19. Family Savings Group Account

20. Savings Plus Account

SALARY ACCOUNTS

46
9. Premium Salary Account

10. Regular Salary Account

11. Defence Salary Account

12. Classic Salary Account

13. Payroll Account

14. No Frills Salary Account

15. Reimbursement Account

16. Salary Family Account

47
CURRENT ACCOUNTS

16. Premium Current Account

17. Regular Current Account

18. RFC - Domestic Account

19. Flexi Current Account

20. Apex Current Account

21. Max Current Account

22. Merchant Advantage Current Account

23. Merchant Advantage Plus Current Account

24. Plus Current Account

25. Trade Current Account

26. Current Account for Professionals

27. Current Account for Hospitals and Nursing Homes

28. Agri Current Account

29. EZEE Current Account

30. Supreme Current Account

48
49
CLEARING PROCESS

Clearing is a process by which banks exchange instruments. Funds are transferred from the

drawer of the cheque to the payee.

Clearing house

Clearing House is the intermediary bank, which controls the entire clearing system. All

cheques are received and sent by banks for payments/ collection through the Clearing House.

TYPES OF CLEARING

M.I.C.R. Clearing

With a view to speeding up the cheque clearing process, both local as well inter city, the

Reserve Bank of India has introduced mechanized cheque processing system using MICR

(Magnetic Ink Character Recognition) technology. Under this system, the cheques are

processed at high speed on machines. Banks issue cheque, draft and other payment

instruments in MICR format using the special quality paper and printing specifications. On

MICR instruments, there is a code line at the bottom containing information printed in

magnetic ink, which is required for mechanical processing.

The code line contains the following information:

i. First six digits indicate the Cheque Number

ii. Next three numbers indicate city code

iii. Next three numbers indicate bank code

iv. Next three numbers indicate branch code

v. Next 6 digits indicate account number

50
High Value Clearing

This involves special processing of cheques of amount Rs. 1, 00,000/- & above. Funds are

credited to payee’s account the same day. Cheque has to be deposited before the high – value

cut off time of the specific city.

Return Clearing

When cheques presented by banks cannot be cleared for any reason whatsoever by the

drawee bank, they are returned back to the presenting / collecting bank. This process of

returning the cheques happens through return clearing.

51
Clearing Process
A issues cheque to B. the payment from A to B happens through clearing when A & B hold
accounts in two different banks. The participants in this process are
A’ Bank : Drawee Bank
B’ Bank : Collecting/ Presenting Bank
Clearing house : RBI
CLEARING CYCLE

B’s Bank credits B’s


‘A’ issues Cheque account
to ‘B’

Clearing House forwards


credit to B’s bank

‘B’ deposits cheque in


his bank- Collecting
Bank
A’s bank processes cheque by
debiting A’s account & passing
credit to clearing House

B’s Bank forwards cheque Clearing House forwards


to Clearing House cheque to A’s Bank-
Drawee Bank

CLEARING
HOUSE

REMITTANCES
52
There are 4 types of Remittances, they are

 PAY ORDER

 DEMAND DRAFT

 RTGS

 NEFT

PAY ORDER ISSUE

Things required at the desk:

 PO Slips

 Pay order inventory

 Printer

 Required Stamps

Things to check:

 Pay order charges – cash/cheque

 Profile options for finding out charges

 Profile entry for issue of pay order

 Signature of signing authority depending on amount

 How to hand over the pay order to customer

 Limit of cash receipt for issue of pay order

Accept:

 PO slips with all details filled

 Cash/cheque

Ensure:

 All details are filled up properly in the slip

 The amount on the cheque includes the charges

53
 Cheque is signed by customer

 Check balance and signature in customer’s account

Process:

 Scrutinize the Pay order slip

 Pass entry in the profile

 Debit customer’s account

 If amount is above Rs. 50,000/- the transaction is to be verified by Checker

 Print the pay order

 Get the pay order signed by the signing authority

 Affix security adhesive

 Hand over the pay order to the customer

 Take customer’s signature in the pay order register

DEMAND DRAFT

Things required at desk

 Demand draft (DD) slips

 Demand draft inventory

Things to check

 Demand draft charges- cash/ cheque

 Profile entry for finding out charges

 Profile entry for issue of demand draft

 Signature of signing authority depending on amount

 DD punching

Accept

 DD slips with all details filled

54
 Cash/ cheque

Ensure

 All details are filled up in the slip

 The amount in the cheque includes the charges

 Cheque is signed by customer

 Check balance and signature in the profile

Process

 Scrutinize the DD slip

 Pass entry in the profile

 If amount is above Rs.50,000/- get transaction verified by Checker

 Print the Demand Draft

 Get the DD signed by signing authority

 Punch relevant slots in the DD and affix the security adhesive

 Hand over the DD to customer

 Take customer’s signature in the DD register

Note: RBI has stopped Pay order above Rs. 50,000. It is preferable to make DD/PO by

account only as per IT rules.

55
CHARGES OF DD/PO

The charges of DD/PO are as follows:

For Rs. 20,000/- : charges to be paid Rs. 50/-

After Rs. 20,000/- : charges are Rs. 52.5

For example:

Rs.20, 000/- : charges = Rs. 50/-

Rs. 21,448/- : charges = Rs. 52.5/- (21 x 2.5)

Rs. 21,900/- : charges = Rs. 55/- (22 x 2.5)

Revalidation of Demand Draft & pay order

 DD/PO issued by HDFC Bank is valid for the period of 6 months/3 months

respectively from the date of issuance.

 Whenever the DD/PO is not encashed on or before this period, then the customer may

approach the DD/PO issuing branch for revalidation of the instrument. The customer

may either be purchaser or beneficiary of the instrument.

 In case of Beneficiary initiated request. No objection certificate from purchaser is

mandatory along with revalidation request & original DD/PO instrument.

 In case of purchaser initiates request, purchaser has to give request letter duly signed

as per mode of operation of account to the branch along with original DD/PO

instrument

 In receipt of the original DD/PO branch has to check whether DD/PO is still unpaid,

the DD/PO is revalidated for further 6 months period from the date of revalidation.

56
Issuance of Duplicate DD/PO

 Duplicate DD/PO is issued at the specific request of the purchaser/ beneficiary after

verifying that the said instrument is still unpaid.

CANCELLATION OF DD

 DD/PO not utilized by the applicants are given to the DD/PO issuing branch for

cancellation. DD/PO cancellation has to be given to the branch by providing request

letter duly signed by the authorized signatories along with the original instrument

after affixing revenue stamp of Re. 1/- if the proceeds are to be given by way of cash

for cases less than Rs. 50,000 and it should be duly signed by the authorized

signatories, if the proceeds are to be given. Revenue stamp need not be insisted if the

proceeds are by way of account transfer.

Note: In case the customer does not have original DD/PO at the time of cancellation or

issuance of duplicate DD/PO, then the customer must deposit an Indemnity Bond to the bank,

on Rs.100/- stamp paper

RTGS

“Real Time Gross Settlement System” is a fund transfer mechanism where transfer of money

takes place from one bank to another on a ‘real time’ or gross basis. This is the fastest

possible money transfer system through the banking channel. Settlement in real time means

payment transaction is not subjected to any waiting period. The transactions are settled as

soon as they are processed. “Gross settlement” means the transaction is settled on one to one

basis without bunching with any other transaction. Considering that money transfer takes

place in the books of the Reserve Bank of India, the payment is taken as final and

irrevocable. RTGS timings in ING are from 10:00 hours to 17:00 hours in weekdays and from

10:00 hours to 13:00 hours on Saturday.

57
TAT – TAT or turn around time for RTGS in ING is 2 hours.

Charges –

- RTGS charges for amount < (below) Rs. 5, 00,000 = 25 + Service Tax

- RTGS charges for amount > (above) Rs. 5, 00,000 = 50 + Service Tax

NEFT

NEFT – “National Electronic Fund Transfer” operates on a deferred net settlement (DNS)

basis which settles transaction in batches. In DNS, the settlement takes place at a particular

point of time. All transactions are held up till that time. NEFT settlement takes place at fixed

times a day as contrary to RTGS which takes place on priority basis.

TAT – TAT or Turn Around Time for NEFT in ING is 24 hours.

Charges:-

– NEFT takes care of the amount only Up to Rs 1 lac which is

Rs. 5/- per transaction.

58
SWOT ANALYSIS

59
SWOT ANALYSIS

STRENGTHS: -

1. Right strategy for the right products.

2. Superior customer service vs. competitors.

3. Great Brand Image.

4. Products have required accreditation.

5. High degree of customer satisfaction.

6. Good place to work

7. Lower response time with efficient and effective service.

8. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESS: –

1. Some gaps in range for certain sectors.

2. Customer service staff needs training.

3. Processes and systems, etc

4. Management cover insufficient.

5. Sectoral growth is constrained by low unemployment levels and competition for staff

60
OPPORTUNITIES: –

1. Profit margins will be good.

2. Could extend to overseas broadly.

3. New specialist applications.

4. Could seek better customer deals.

5. Fast-track career development opportunities on an industry-wide basis.

6. An applied research center to create opportunities for developing techniques to

provide added-value services.

THREATS: -

1. Legislation could impact.

2. Great risk involved

3. Very high competition prevailing in the industry.

4. Vulnerable to reactive attack by major competitors.

5. Lack of infrastructure in rural areas could constrain investment.

6. High volume/low cost market is intensely competitive.

61
COMPETITORS

62
ICICI BANK

ICICI Bank (Industrial

Credit and Investment

Corporation of India) is

an Indian multinational banking and financial services company headquartered in Mumbai,

Maharashtra, India, with its registered office in Vadodara. In 2014, it was the second largest

bank in India in terms of assets and third in term of market capitalisation. It offers a wide

range of banking products and financial services for corporate and retail customers through a

variety of delivery channels and specialised subsidiaries in the areas of investment

banking, life, non-life insurance, venture capital and asset management. The bank has a

network of 4,450 branches and 13,995 ATMs in India, and has a presence in 19 countries

including India.

The bank has subsidiaries in the United Kingdom and Canada; branches in United States,

Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance

Centre, China and South Africa; and representative offices in United Arab Emirates,

Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also established

branches in Belgium and Germany.

63
AXIS BANK

Axis Bank is the third largest private-

sector banks in India offering a

comprehensive suite of financial

products. Headquartered in Mumbai, the bank has 2,959 branches, 12,743 ATMs and nine

international offices. The bank employs over 50,000 people and had a market capitalization

of Rs. 1.0583 trillion (US$16 billion) (as on March 31, 2016). It offers the entire spectrum of

financial services to customer segments, spanning large and mid-corporates, SME, and retail

businesses. Axis Bank has its registered office in Ahmedabad (As of 30 Jun. 2016, 30.81%

shares are owned by promoters & promoter group (United India Insurance Company

Limited, Oriental Insurance Company Limited, National Insurance Company Limited,

National Assurance Company Ltd, GIC, LIC & UTI). Remaining 69.19% shares are owned

by Mutual Funds Institutions, FIIs, Financial Institutions (banks), Insurance companies,

corporate bodies & individual investors among others.

64
SBI (State Bank of India)

State Bank of India (SBI) is an Indian multinational, public

sector banking and financial services company. It is a government-

owned corporation with its headquarters in Mumbai, Maharashtra.

As of 2014-15, it had assets of Rs. 20.480 trillion (US$300 billion)

and more than 14,000 branches, including 191 foreign offices

spread across 36 countries, making it the largest banking and financial services company in

India by assets. The company is ranked 232nd on the Fortune Global 500 list of the world's

biggest corporations as of 2016.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the

founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in

the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in

British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India,

which in turn became the State Bank of India in 1955. Government of India owned the

Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a

60% stake, and renamed it the State Bank of India. In 2008, the government took over the

stake held by the Reserve Bank of India.

State Bank of India is a banking behemoth and has 20% market share in deposits and loans

among Indian commercial banks.

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KOTAK MAHINDRA BANK

Kotak Mahindra Bank is an Indian

private sector banking headquartered

in Mumbai, Maharashtra, India. In

February 2003,Reserve Bank of India (RBI) gave the licence to Kotak Mahindra Finance

Ltd., the group's flagship company, to carry on banking business.

It offers a wide range of banking products and financial services for corporate and retail

customers through a variety of delivery channels and specialized subsidiaries in the areas

of personal finance, investment banking, life insurance, and wealth management.

Kotak Mahindra Bank has a network of 1,336 branches and 2,044 ATMs spread across 702

locations in the country. In 2016, it was the third largest private bank in India by market

capitalization.

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OBJECTIVE OF THE

STUDY

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OBJECTIVE OF THE STUDY

To know the banking and financial terms used in day-to-day life and which plays an

important role in our life.

To know the services of HDFC BANK in Lucknow.

To know the charges for their services.

It’s Comparison with different competitor bank so that it can have a rough idea of

HDFC BANK position in the market.

To know the methods of banking.

NEED OF THE STUDY

For Bank: -

The study is useful to HDFC Bank because with the use of the report it can compare itself

with other banks and also do some modifications in its services and charges so as to compete

with the competitors in both short as well as long run.

For Student: -

The study is useful for student as he gains knowledge about various services of bank, the

working of the bank and also about the competitors of the bank, which plays an important

role in the marketing and implementation of the strategy.

SCOPE OF THE STUDY

The scope of study is to understand the problems faced by the bank while maintaining

the market position among the competitors. With the help of this project we can introduce

new facilities and we can explore new segments of customers with the analytical conclusion

of this project. We can better understand what our weaknesses are and what our strengths are;

so that we can explore the strengths and remove weaknesses.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

MEANING OF RESEARCH:-

Research in common parlance refers to a search for knowledge. One can also define research

as a scientific systematic research for pertinent information on a specific topic. In fact,

research is an art of scientific investigation.

The Advanced Learner’s Dictionary of current English lays down the meaning of research as

“a careful investigation or inquiry especially through search for new facts in any branch of

Knowledge”

EXPLORATORY RESEARCH DESIGN

Exploratory research studies are also term as formulating research studies. The main purpose

of such studies is that of formulating a problem for more precise investigation or of

developing the questionnaire from an operational point of view the major emphasis in such

studies is on the discovery of idea and insights. As such there research design appropriates for

such studies must be flexible enough to provide opportunity for considering different aspect

of a problem under study.

Present research is exploratory in nature it is aim together relevant information of wealth

management in HDFC Bank in Lucknow, and about their loyalty towards the HDFC Bank

wealth management.

For this research project two types of data has been use

a. Primary data

b. Secondary data

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PRIMARY DATA

Primary data are those, which are collected for the first time and are those original in

character. Primary data are in the shape of raw material to which statistical method are

applied for the purpose of analysis & interpretation primary are been collected in market by

three basic methods:-

 Survey of person

 Observation

 Experiments

I have been collecting primary data by the method of survey of persons. Because of

systematic gathering of data from respondents through questionnaire, which is objective

oriented, unambiguous interesting, simple, accurate and systematic motivating to respondent

and complete in information concern.

SAMPLE SIZE AND DISTRIBUTION:

Sample size is 100 and the method used in stratified sampling, sample distribution is

scattered type.

SECONDARY DATA

Secondary data are those which have already been collected by some other person and which

have been passed through the statistical machine at least once.

EXTERNAL DATA:

This type of Secondary data can be obtained from the outside sources e.g. magazine, journal,

newspaper, article and the World Wide Web.

PROBABILITY SAMPLING

Probability sampling is also known as ‘random sampling’ or ‘chance sampling’

Under this sampling design, every item of the universe has an equal chance of inclusion in

the sample .it is so to say, a lottery method in which individual units are picked up from the

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whole group not deliberately but by some mechanical process. Here it is blind chance alone

that determines whether one item or the other is selected.

STRATIFIED RANDOM SAMPLING:

The sampling procedure may be summarized as follow -

 The universe to be sample is divided (or stratified) into group.

 Those are mutually exclusive and include all items in the universe.

 A sample random sample is than chosen independently from each group of Stratum. The

process of stratified random sampling differs from simple random sampling in that, with the

later, sample item are chosen from each stratum chance.

DATA COLLECTION METHOD

Usually, the information to solve the problem cannot be found in internal of publish external

records. The research must be depending on primary data. Which are collected scientifically

for the study?

Data are mainly these types ;

Primary Data

Primary sources refer to data collection directly from the customer taken education loan.

They are often reliable data source & help in overcoming limitations of secondary data.

Primary data is again mainly of two types.

Census

Sample

Census

Refers to collecting of data from the population. The most common form of census is the

Indian population census or compilation of votes list is an area. It takes along time & hence is

not suitable for market researcher.

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Sample;

Referes to a pick taken from a population. The conclusion can be exported to entire

population and generation can be made. The key is reprehensive sample.

The discussion on sample based on time available to a research & decision market. For

example exploratory research is involving customer of HDFC Bank.

Questionnaire- used for survey method.

This is most important tool for data collection. A questionnaire contains question that

researcher ask his respondents to customer.

For example:

Do you buy the products regularly?

How frequently you buy the products usually or occasionally?

Sample:

A sample is selection of unit from entire group called population on universe of interest.

In marketing a sample is a particular segment or part of market and it is focus of marketing

decision, which may be applied to entire market.

A sample plan is vital element of research design. It must indicate -

a. The sampling unit i.e. who is to be our respondent or who is to be surveyed.

b. Sampling size - how may responded are to be contacted under the survey.

c. sampling procedure - how they are to be selected.

Sample size:

100 Bank customers

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PROBLEMS & LIMITATIONS

1. There is time constraint for me.

2. Not exact & true information given by people.

3. Inadequate data.

4. It is tough to take appointment.

5. The members of the bank are losing trust towards the bank due to less concern

attitude of its head office.

6. HDFC are not properly communicating about the products and schemes to the

customers.

7. HDFC are less motivating towards bankers to sale their product

8. Frequent changes in schemes make bankers & customers confused.

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DATA ANALYSIS

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DATA ANALYSIS
1. In which bank do you want to open an account whether it is saving or categories

of current account?

40% people said that they can’t say anything without knowing the services of the

banks. Remaining 60% people have given their opinion.

HDFC BANK ICICI BANK AXIS BANK IDBI BANK CAN’T SAY

18 21 08 13 40

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2. What is your occupation?

BUSSINESSMEN SERVICEMEN
35% 65%
Interpretation: Most of the respondents belong to Servicemen category.

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3. What is your monthly Income?
 Below 15,000 22%

 Rs. 15,000- Rs 25,000 43%

 Above 25,000 35%

Interpretation: Most of the respondents have monthly income in Rs. 15000 to Rs. 25000

range.

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4. Which kind of account you have?
 Saving account 62%

 Current account 38%

Interpretation: It was found that 62% respondents have saving bank account while 38%

respondents keep current account.

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5. Why did you open account?

 To deposit my saving for safety 38%

 For Deposit Schemes like (FD) 32%

 To take loans 20%

 Others 10%

Interpretation: It was found that 38% respondents opened bank account for Saving their

money while 32% respondents opened account for deposit schemes like FD and all, and rest

20% forced to open account due to loan services.

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6. Do you feel the Product provided by the Bank is comparable to other Bank in your

locality?

 Yes 97%

 No 3%

Interpretation: Most of the respondents think that Product provided by the Bank is

comparable to other Bank in locality.

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7. Are you satisfied with the product of the Bank?

 Yes 99%

 No 1%

Interpretation: Most of the respondents are satisfied with the Bank Products.

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8. In your opinion how do you rank HDFC Bank with other Nationalized Banks in term

of customer Service?

 1 to 5 Nationalized Banks 85%

 5-10 13%

 10-15 2%

 15-20 0%

 Above 20 0%

Interpretation: Most of the respondents rate the HDCF Bank in top 1 to 5 Nationalized

Banks..

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9. Do you have knowledge about credit facilities being provided by the bank?

 Yes 52%

 No 48%

Interpretation: It was found that only 52% people are aware about the credit facilities of

bank. Bank need to make people aware about the credit facilities.

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10. If no, did bank explain to you the advantages of these credit facilities?

a. Yes 37%

b. No 63%

Interpretation: It was found that bank didn’t bank explain the advantages of these credit

facilities to maximum (63%) unaware respondents.

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FINDINGS
As we have seen that all the banks are providing almost the same kind of services to their

customers in somewhat more or less numbers. I have done the comparison on the basis of

service charges different banks are charging from their following interpretation is drawn:-

 ICICI Bank proves itself the best bank among the top 4 private banks in Gonda (U.P)

because it is providing the best and some extra services and benefits to its customers

in comparatively less charges.

 HDFC Bank got 2nd position because it has less number of product range than ICICI

Bank and in some categories of Current A/C some services are not providing by it.

 AXIS Bank got third rank as it is better than each other in some offerings and

benefits.

 IDBI Bank got 4th position as it has not providing much more option to customers in

investing their money. It has only few categories of current a/c and its charges very

high.

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SUGGESTION

 As HDFC is providing very good services in terms of the money transaction but they

are not having their ATM’s in comparison to the other banks if we consider only in

Lucknow (U.P) then ICICI is having 3 ATM’s but HDFC is having only 1 ATM’s. So

HDFC should increase their ATM’s services.

 HDFC bank is having very good policy for the ARMY but they are not having much

concentration on the saving a/c then the ICICI bank so HDFC should make some

special arrangement for the ARMY saving a/c.

 HDFC is not having their Internet service in a good manner then ICICI & other banks

as ICICI is providing the bill pay facility through internet but HDFC is not having. So

HDFC should appoint a team who can make this facility batter.

 Third Party Pay is a major issue for the HDFC bank because they only having self Pay

facility & customer want the “Third Party Pay”. So HDFC also consider this point.

 HDFC bank is not having more categories in Current a/c then ICICI bank.

 The last but not least HDFC bank’s working hour they close their bank at 3.30 but all

other bank providing the facility up to 7-8 pm.

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CONCLUSION

After doing a lot of research and studying the materials available on internet, newspapers,

magazines and journals. I want to conclude that people prefers HDFC Bank more than ICICI

Bank for saving accounts in private sector. As private banks are coming daily in our country

still, Mostly people prefers government banks for saving accounts, especially older persons

are more dependent on government banks. It is true that younger population preference is

changing and they prefer more private banks because of services and facilities provided by

private banks. The appearance of banks also becomes very important for the present

generation and private banks put their complete efforts on this, which is lacking in

government banks. At last I can only say that HDFC Bank enjoys leading position in personal

saving account sector.

Conclusion about services and both favorable and unfavorable Services and charges prove

favorable for the services with which it is proving good services in low charges or charges

equal to the charges of the main competitor and proves unfavorable for the services and

products not providing by it while providing by any other leading bank. For the example

HDFC bank is not providing the service of home delivery and collection with current a/c

category-1 while other banks are providing the same service by charging minimum charges.

This could prove unfavorable to bank as this service can attract customers.

To conclude at last I would conclude HDFC bank is a bank, which provides attractive

services, it has got a very good name in the market. I wish that HDFC bank keep up its name

& grow with a great speed. It was such a grateful opportunity to get training in such a

renowned bank.

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BIBLIOGRAPHY

 https://en.wikipedia.org/wiki/HDFC_Bank

 http://www.hdfcbank.com/htdocs/aboutus/default.htm

 http://en.wikipedia.org/wiki/Banking_in_India

 http://www.ibef.org/industry/banking-india.aspx

 http://www.hdfcbank.com/

 https://en.wikipedia.org/wiki/State_Bank_of_India

 https://en.wikipedia.org/wiki/Axis_Bank

 https://en.wikipedia.org/wiki/ICICI_Bank

 https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank

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ANNEXURE

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QUESTIONNAIRE

Name of the respondent: .…………………………………………

Address: …………………………………………

Contact No: ………………………………………….

EMAIL: : ……….. ………………………………………………….

1. In which bank do you want to open an account whether it is saving or categories

of current account?

 HDFC BANK

 ICICIBANK

 AXISBANK

 IDBI BANK

2. What is your occupation?

 BUSINESSMAN

 SERVICEMAN

3. What is your monthly Income?

 Below 15,000

 Rs. 15,000- Rs 25,000

 Above 25,000

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4. Which kind of account you have?

 Saving account

 Current account

5. Why did you open account?

 To deposit my saving for safety

 For Deposit Schemes like (FD)

 To take loans

 Others

6. Do you feel the Product provided by the Bank is comparable to other Bank in your

locality?

 Yes

 No

7. Are you satisfied with the product of the Bank?

 Yes

 No

8. In your opinion how do you rank HDFC Bank with other Nationalized Banks in term

of customer Service?

 1 to 5 Nationalized Banks

 5-10

 10-15

 15-20

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 Above 20

9. Do you have knowledge about credit facilities being provided by the bank?

 Yes

 No

7. If no, did bank explain to you the advantages of these credit facilities?

 Yes

 No

8. Do you have any suggestions?

_____________________________________________________________________

_____________________________________________________________________

_______________________________________________________________

Thank You

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